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Ingredion Announces Recommended All-Cash Acquisition of Tate & Lyle

INGR
  • Ingredion has announced a recommended all-cash offer to acquire Tate & Lyle for approximately £3.7 billion ($5.0 billion), implying a 59% premium to Tate & Lyle's closing share price on May 13, 2026.
  • Tate & Lyle shareholders will receive 595 pence per share plus potential final dividends of up to 13.2 pence and interim dividends of up to 6.8 pence.
  • The transaction combines Ingredion's capabilities with Tate & Lyle's expertise in mouthfeel, sweetening, fortification, texturants, sugar reduction, multi-ingredient systems, and recipe development.
  • The merger creates a global provider with complementary supply networks across the Americas, Europe, the Middle East, Africa, and Asia Pacific to deliver faster, more reliable, and cost-effective solutions.
  • The combined entity is expected to generate run-rate net cost synergies of approximately $130 million by the end of 2030, with one-time integration costs of around $175 million.
  • Ingredion intends to finance the acquisition using existing cash, new debt, and a committed bridge financing facility, targeting a pro forma net leverage of 3.0x with a goal to reduce it to 2.5x within 18 months.
  • The acquisition will be implemented via a court-sanctioned scheme of arrangement under UK law, subject to shareholder approval, court sanction, and antitrust clearances.
  • Completion of the transaction is expected to occur in the second half of 2027.
  • Huber Equity Corporation has provided an irrevocable undertaking to vote in favor of the scheme for shares representing approximately 16.8% of Tate & Lyle's existing share capital.
  • Both companies' boards have unanimously recommended the offer to their respective shareholders.